(Mishnah): If one lends his friend money, he should only take a security through Beis Din.

He (the lender) should not go into his house to take his security, as the pasuk states (Devarim 24, 11), "You shall stand outside''.

If the borrower had two utensils, the lender should take one and return the other. He should return his pillow at night and his plough blade in the day. If the borrower died, the lender does not need to return it to his inheritors.

Rabban Shimon ben Gamliel: He only returns it to the borrower during the first 30 days, but after that (if the borrower has still not repaid the loan), the lender sells it through Beis Din.

Gemara): We learn about damages payments that he (the victim) can collect from high quality land, as the pasuk states (Shemos 22, 4), "...the best of his fields...etc.''

We learn about a lender that he can collect from average quality land, as the pasuk states (Devarim 24, 11), "...and the man to whom you shall lend (shall bring the security to you outside)''. (The norm would be for a lender to bring out an average quality item as security rather than a high quality item).

We learn fields from securities (meaning that just as the Torah instructs a lender to take average quality movables as security, so he should take average quality fields).

Similarly, we should learn securities (i.e. movables) from fields (meaning that just as for damages, the victim can collect from high quality land, so too he can collect high quality movables).

R. Simai: (In explaining the earlier pasuk of "...and the man to whom you shall lend etc.'') according to Torah law an agent of Beis Din may enter and collect average quality items, because had the lender entered, he would take out the best items; and had the borrower entered (his own house) he would take the worst items. Rather, an agent of Beis Din enters and he takes average quality items.

Beraisa (R. Yishmael): According to Torah law, the borrower should enter, as the pasuk says "...and the man to whom you shall lend etc''. Since the norm is that a borrower would take out his poor quality items to use as security, the Torah is teaching that one may pay a lender with low quality items (and land). (However, the Chachamim required the borrower to pay with average quality items/land in order to encourage people to lend to the poor.)

R. Ila: In Bavel they learned that (Shemos 22, 25), "chavol'' - If you shall take as security'' would only be allowed in Beis Din. From where is it known that it may also be done without Beis Din? (The double wording of) "chavol tachbol'' includes this.

If he took it without permission (i.e. he did not return it before sunset), he has transgressed every prohibition involved in it (i.e. (Devarim 24, 10), "do not enter his house''; (ibid, 13), "you shall return the security to him'' and (ibid, 12), "you shall not sleep with his security''.)

R. Ila: He has caused himself to transgress these prohibitions, by taking a security without the permission of Beis Din.

If he took a security and then returned it and the borrower sold it to a buyer, the lender may rightfully collect payment by repossessing the security from the buyer (since the lender had already acquired it earlier).

Question: If the lender must return the security on time (when it is needed by the borrower, as above), what benefit it does the lender have by taking it?

Answer #1 (Rebbi): Perhaps the Shemita year will come and cancel the debt and the lender will be able keep the security since he already acquired it.

Answer #2: If the borrower will die and his movables will fall to his orphans, they are not required to forfeit them to pay a loan. The security can be used as payment even if had been returned to the orphans' possession.